Call me cynical, but I read an article on the insurancejournal.com website that worries me.
The article explained that Progressive Insurance, America’s fourth-largest car insurer, has reported that is second-quarter profit fell 9.6 percent because investment gains did not work out the way they expected.
It is important to note that Progressive did not report a loss, or that it failed to even make a profit, it simply reported that its profit was less than it had previously been.
Nevertheless, my experience handling personal injury cases — and primarily automobile accident cases — over the past 21 years, suggests that we will likely soon start hearing stories from Progressive and its representatives that there is a personal injury claims crisis in Florida. In the past, in times like these when insurance companies see declining profits, they often seek to have limitations placed upon injury claims, lawsuits, and even attorneys’ fees.
Just as in prior times, it is obvious that Progressive’s problems have little or nothing to do with claims or injured people. Progressive’s investments simply aren’t kicking off as much income as they would like them to.
Regardless, it won’t surprise me to read about lobbyists flooding Tallahassee touting a “crisis” — particularly if State Farm, Allstate, and GEICO publish similar investment news. Call me cynical…